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The UK coalition government's tax policy on capital gains tax remains riddled with uncertainty, although a 40% or 50% hike is on the cards. In the meantime, before changes are enforced there are short-term opportunities to be exploited, according to an expert.

David Kilshaw, head of private client advisory at accountant KPMG, said there are options available to maximise gains before a rise is enforced, which is likely to take effect either on June 22 or at the start of the next tax year on April 6 2011.

He said: "It may be possible in certain circumstances to 'bank' the current 18% rate of CGT. The first stage is to identify assets which are standing at a gain and consider the types of planning that could be undertaken.

"Realising capital gains under the current regime reduces the exposure to a future increase in CGT rates. The most straightforward way to achieve this is to sell the asset to a third party.

"However, given the current economic conditions this may not be attractive commercially and, in this case, alternative methods of realising capital gains should be considered. This can include transfers of assets between family members or family trusts.

"If you are considering disposing of an asset which is standing at a gain, consider splitting ownership between husband and wife to maximise the relief available. Transfers between spouses or civil partners are on a no gain no loss basis, providing an immediate saving of CGT."

He added that there are further planning opportunities for specific assets. For example, loan notes (which may have been issued as part of an earlier corporate transaction) should be reviewed and consideration given to crystallising any inherent capital gain.

He said there will be a cashflow implication of realising gains now and tax on disposals made now will be due on January 31 2011 regardless of whether proceeds have been received. In certain circumstances, it is possible to pay the resulting CGT liability over a 10-year period, although this will not be relevant in all cases.